David Drumm trial hears evidence on Anglo transactions

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

David Drumm’s trial was continuing at Dublin Circuit Criminal Court before Judge Karen O’Connor and a jury. The proceedings were reported on 13 April 2018.

Drumm had pleaded not guilty to conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud Anglo Irish Bank depositors and investors by dishonestly creating the impression that its 2008 deposits were €7.2 billion larger than they were. He had also pleaded not guilty to false accounting by furnishing information to the market on 3 December 2008 that the deposits were €7.2 billion larger than they were.

Former Irish Life and Permanent liquidity head Paul Kane told the jury he had carried out and supervised €7.2 billion in transactions between the banks. The jury heard recorded calls between Kane and David Gantley, the former head of treasury at Irish Life and Permanent.

Kane said Anglo had been disappointed that Irish Life and Permanent had not granted it a credit limit after Anglo had increased the other bank’s limit to €820 million. Under cross-examination, he agreed that both banks benefited from the reciprocal arrangement, even if individual transactions might have benefited only one side.

Drumm accepted that the transactions took place but disputed that they were fraudulent or dishonest. The trial had entered its eleventh week.